Since bankruptcy is always a concern, corporations often secure the bonds by pledging specific assets like airplanes, government securities, or real estate. These bonds secured by specific collateral are called secured bonds. The issuer of a secured bond pledges title of the assets to the trustee, who just might end up selling them off if the

A test question might have you say that participating preferred stock pays a dividend that is “fixed as to the minimum but not as to the maximum,” while straight or cumulative preferred stock pays dividends that are “fixed both as to the minimum and the maximum.”

Under this code of ethics, the adviser needs to keep records of their access persons’ securities holdings (what they own) and transactions (what they buy and sell). The holding reports must include: • The title and type of security, and as applicable the exchange ticker symbol or CUSIP number, number of shares, and principal amount of each

discounted cash flow analysis. The basic question that this methodology tries to answer is, “how much cash can we generate from this investment adjusted for the time value of money?” Why adjust for the time value of money? Because, a company could always just park excess cash in a very safe place and receive X amount on that cash; if they’re going

The registration of an agent is not effective during any period when he is not associated with a particular broker-dealer registered under this act or a particular issuer. When an agent begins or terminates a connection with a broker-dealer or issuer, the agent as well as the broker-dealer or issuer shall promptly notify the [Administrator].”

The investment adviser would file an application with the state securities Administrator, the same Form ADV used for SEC registration. The state securities Administrator might also require the applicant to publish an announcement in one or more specified newspapers published in the state. The initial application is accompanied by a consent to

The options premium will affect either the cost basis or the proceeds on the stock transaction.

she gets to deduct the fair market value of the stock on the date of the donation. If it’s worth $50,000 when she donates it, she can deduct $50,000 from her taxable income that year.

Another way to define alpha is to say that it measures an investment’s performance compared to a benchmark beyond what would be predicted by beta.